MANILA, Philippines – SM Prime Holdings Inc., the country’s biggest mall developer, is trying out a new mall model in Dasmarinas, Cavite that will incorporate a wet and dry public market in partnership with the local government.

In an interview, SM Prime executive vice president Jeffrey Lim said the new P500-million mall is already under construction on a two-hectare lot the company is leasing from the local government for 25 years extendable by another 25 years.

He said the project will benefit the local community since “we pay them rental on the property. On top of that, in a way we can improve the service and quality. We will be able to maintain the area” since public markets are usually run down.

Lim explained that the partnership is “actually an effort for both parties to try to see how we can help in terms of the development. On top of that they’ll get more tax with the way SM runs it.”

“We’ll have a semi basement for vendors. Then we’ll have on the ground floor, maybe an SM hypermarket with some food stands. Second floor will be for third party tenants while the top floor will be for parking,” Lim said.

He added that the mall will be a relatively small one of about 30,000 square meters in three and a half storey building and is slated for opening in the last quarter of the year.

He noted that SM will not be earning much from the public market section of the mall since they cannot charge the vendors more than the rate pegged by the local government for rent.

“It has to be aligned, the rates we have to consult with the local government,” Lim said explaining that its more of helping the local government since the revenues will not be big in comparison to the P500 million investment of SM Prime.